Commercial property for rent vs the ownership of commercial property: which is best for you?
RDS Real Estate leads the way in the Fort Worth area with over two-million square feet of outstanding industrial and commercial property for lease, and in this article, we will give you the pros and cons of leasing vs ownership. Call us at 817-439-3224 for more information and to speak to a leasing agent about our prime Fort Worth real estate.
Now, let’s talk about the pros and cons.
Commercial property for rent pros.
The primary pro regarding commercial space for lease is the low initial cost. There are tax considerations on a commercial property lease at play as well, but the initial outlay of cash is the main determining factor between leasing vs purchasing.
To purchase commercial property, we are talking about an investment of hundreds-of-thousands of dollars, if not millions. In the real world, most start-up businesses do not have that kind of investment capital. This then means that you will either need investors or a bank loan and, quite frankly, that is a whole different assortment of headaches.
Leasing commercial property means much less liability, as well.
Commercial property for rent cons.
The flip side of that discussion is this: not owning the property means fewer tax deductions, and a much smaller return on investment in the years to come. There is a marked difference in the value of a business with property attached, and the value of a business without physical property as part of the value.
Commercial property ownership pros.
Owning commercial property means increasing the value of your business. It means greater tax deductions. And, in most cases, it means a hedge against an unstable market. Real estate rarely decreases in value over the long-term.
Commercial property ownership cons.
As a short-term investment, owning commercial property can be a bit of a risk. Besides the high monthly payments to the bank, you are also susceptible to the whims of the real estate market. If your business is healthy, and recession-proof, you can hang in there during the hard times and continue to make your mortgage payments. If your business is not on a solid foundation, you risk losing your entire investment.
The bottom line is this: for small businesses, or business ownership with very little in the way of safety funds, ownership is, to our way of thinking, a risk at best. To our way of thinking, starting small, and playing it safe, is the smart approach, especially in a fluctuating economy.
A final word about RDS Real Estate
RDS Real Estate is locally owned and operated, and we’ve been serving the business community of Tarrant County long enough now to have a sterling reputation. No matter what type of commercial property you are looking for i.e. retail space for rent, shop for rent, office space for rent, you will find it with RDS Real Estate.
Call us today and ask us about the great opportunities available in the Fort Worth Design District, consisting of Box Office Warehouse Suites, Paddock Place Office Suites, and the Golden Triangle Business Park.